Loses $2 bn exactly on the 3rd death anniversary of Lehman Brothers. Nice!!!
Proof that technical analysis doesn’t work.
it’s funny that it’s only a “rogue trade” when it looses money. otherwise it would’ve been a “sound, directional bet”
I was gonna say, they’d call him a superstar if he made 2 billion dollars. This industry is a joke.
AntonioY Wrote: ------------------------------------------------------- > it’s funny that it’s only a “rogue trade” when it > looses money. otherwise it would’ve been a “sound, > directional bet” +1 And give that guy a bonus!
One trader on my floor was fired because he misrepresented a position that made money (or so I heard).
…he’s an equity trader, how the fcuk could he have limits that would even allow a 2B loss? This stinks of sh!t and terrible controls.
LPoulin133 Wrote: ------------------------------------------------------- > …he’s an equity trader, how the fcuk could he > have limits that would even allow a 2B loss? > > This stinks of sh!t and terrible controls. Agreed with Poulin. I don’t think if he made $2B, he’d be praised. It’s certainly be a much better scenario for the bank, but if he made $2B on a trade that they weren’t previously aware of - some huge directional bet - I think they’d wonder how in the hell he had put on a position that big without some risk management team making a note of it. At any rate, this definitely reeks of terrible controls - UBS looks very, very stupid here (as SocGen did back when Kerviel’s losses came to light.
no no no you dont understand, the position is just a hedge
$2B trading loss > CFA + MBA
Where was the guy from? That name sounded pretty exotic. Did he invest with one of his cousins in Nigeria?
name sounds either nigerian or ghanian…
So obviously he found a Nigerian Prince with a large supply of oil that only required Swift Codes and UBS’s mother’s maiden name in order to make a 2 billion dollar oil deal.
Kweku Adoboli, a London-based trader on UBS’s exchange-traded-fund desk in London.
ETF desk, huh? Cover of CFA Mag last issue has “Emerging Threat Funds”…depending on the circumstances of this loss it could be a pretty timely article.
UBS earnings this year: $1.9B well, there it goes
Does everyone still get 7 figure bonuses though?
UBS said it would lay off thousands to recoup the loss. Imagine if you were responsible for thousands of layoffs? You’d be compared to Stan O’Neil, Sallie Krawchuck, Dennis Koslowski, Andy Fastow etc. Not the best company.
“UBS said it would lay off thousands to recoup the loss” Source?
“If the accusations turn out to be true, it would make Adoboli the rogue trader with the third highest loses in history behind Jerome Kerviel, who cost Societe General $6.7 billion in 2008 and Yaduo Hamanaka who lost $2.6 billion of the Sumitomo Corp.'s money in the 1990s, but ahead of Nick Leeson, who famously brought down Barings Bank with £830 million in bad trades in Singapore. Friends described Leeson and Kerviel as regular guys as well. Notably, both Kerviel and Adoboli worked for Delta one divisions of their banks, elite equity trading teams. In his memoirs, Kerviel said that rogue trading on massive levels was a common practice throughout the industry and most bosses were well aware it. No one ever seems to catch a rogue trader, he pointed out, unless they’re losing money.” if they make money, they won’t be caught. the partners of the firm will always make more bonuses then the rogue traders, they have an even bigger incentive to turn a blind eye.